Housing prices shot up in San Francisco
The median sale price of real estate in the San Francisco Bay Area rose in March by 14,4% year‑over‑year, reaching a record level of 1,7 million USD.
Data from Redfin show that this is the largest increase since March 2018 and the biggest price jump among the 50 most populous metropolitan areas in the United States.
Experts emphasize that housing prices in the region last month increased by 24,4% year‑over‑year, the most since 2013.
The main factors driving this trend are demand for artificial intelligence and the return of employees to offices, which coincided with a supply shortage.
“Many 22‑year‑olds receive signing bonuses from AI companies of up to 500 thousand USD and are excited about the possibility of buying a home,” said Ali Mafi, a Redfin Premier real‑estate agent.
“Supply is not keeping up with demand – sellers heard that if they wait to sell, they will get a better offer. Suddenly it turned out that now is the time to sell. We see high‑quality homes in attractive locations receiving 20 offers and achieving prices up to 900 thousand USD higher than the asking price,” he added.
It is worth noting that the bonuses mentioned by the Redfin Premier agent are granted by companies whose budgets allow such large expenditures.
This also means that not every AI employee can expect such a bonus, and on the contrary, many young American workers have long been unable to afford their own property.
One Redfin and Rocket study indicates that about half (49%) of U.S. residents struggle to pay regular rent or mortgage payments.
About two thirds (67%) of Generation Z members struggle with these payments, compared to just over half of Millennials, Generation X, and Baby Boomers (respectively 53%, 54% and 36%).
Source: Redfin.
Moreover, thanks to last month’s real‑estate price surge, San Francisco has regained the title of the largest metropolitan area in the United States that can boast the highest real‑estate prices.
In this way San Francisco left San Jose behind, which held that title for most of 2024 and 2025.
Source: Redfin.
Read also: The housing market crack. “2026 looks like a good year to buy a home.”
See also: Brutal real‑estate data. Apartment sales suddenly dropped by almost 20%
Was it expensive, how is it now?
The average property sold in March in San Francisco reached a price 8,9% higher than the final asking price.
According to the Redfin report, this was the highest premium recorded this month since 2022.
By comparison, the average U.S. home sold for a price 1,3% lower than the final asking price, the lowest since 2020.
“The San Francisco real‑estate market has only 1,8-month supply, compared to 3.2 months nationwide. Monthly supply measures the time it would take to exhaust the current supply of homes for sale at the current sales pace, assuming no new listings,” explained the experts.
Importantly, Americans still hesitate to enter the real‑estate market, mainly due to economic uncertainty, which effectively hinders their purchase decisions.
High real‑estate prices and rising mortgage rates are additional reasons why buyers wait for the right moment before finalizing a transaction.
The ongoing buyer’s market still favors negotiations, which in most cases allow the purchase of a dream home at a significant discount.
Source: Redfin.
Read also: The housing market slump. Those looking for a home “should know this” – experts say
See also: Real estate is no longer falling. 40,000 sales agreements were canceled this month, apartments linger on the market for 60 days
